Continental will cease tyre manufacturing at its Alor Setar plant by end-2025.
The facility, which opened in December 1979 and spans 133,000 m², produces passenger-car, light-truck and motorcycle tyres for the Asia-Pacific market. Some 950 employees work at the site.
Following a strategic business review, Continental said the closure would help safeguard its competitiveness and optimise its product portfolio and manufacturing footprint in the region.
The company pledged support for affected staff through career counselling and by seeking alternative roles both within Continental and externally.
Continental said Malaysia remains a key market in Asia-Pacific and reaffirmed its commitment to customers and partners there.
Its regional tyre-manufacturing network also includes plants in Hefei (China), Rayong (Thailand), Modipuram (India), Kalutara (Sri Lanka) and Petaling Jaya (Malaysia).
